The CBOE (Chicago Board Options Exchange) Put/Call Ratio (CPC) is the ratio of the trading volume of put options to call options. Bearish investors buy put options that gain in value when the market goes down. Bullish investors buy call options that gain in value when the market goes up. A high put/call ratio is bullish for us contrarian investors.
I track the 10-day and 66-day moving averages of the put call ratio. 66 days is three months. As the graph shows, the 66-day and 60-day moving averages are nearly identical and both are at record high levels. This is GREAT NEWS for us bulls!!!